The steel companies in the country may get a little breather amid rising coking coal prices. The steel ministry has sent its recommendations to the finance ministry supporting the removal of import duty on all types of coking coal and is expecting the ministry to notify it soon. ?The proposal is with the finance ministry now. This is the second time it has gone to them. Last time when we had sent it, they had removed the import duty on coking coal with various specifications. It befitted only a few companies. Now, finance ministry have sought our suggestions on removing it completely for which we have already expressed our interest,? a steel ministry official said.
The steel manufacturers are estimated to require over 85.34 million tonne of coking coal this year, which is a key input for manufacturing steel. Most of this requirement is met through import of coking coal from countries like Australia, Indonesia and New Zealand.
Of the total imported coking coal, around 90% is considered to be of relatively low grade and is used in the blast furnaces for steel production. The customs charges 5% duty on the import of coking coal below certain specifications.
?Any exemption in the taxes is of great help. Considering that most of the steel firms are in expansion mode, the requirement for coking coal is going to go up,? said a private steel company official.
The prices of coking coal has reached about $300 per tonne from $200 last year.